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Cheese making companies in Armenia are facing difficulties. 18,317 tons of cheese was produced in Armenia in 2014 compared to 18,592.5 tons in 2015 – only a 1.5% growth.

Head of Agricultural Processing Department of Armenian Ministry of Agriculture Gevorg Ghazaryan told Panorama.am that the main problem of cheese companies is related to the depreciation of the ruble – the Russian currency.

“Cheese at the cost price in Armenia is not competitive in Russia. This is the main problem. An average of 1,500 tons of cheese was exported annually in recent years,” he said noting that there are no quality related problems.
2015 cheese export data has not yet been clarified and released.

As regards an online photo, in which cheese produced in Armenia is called ‘cheese-like product’, the ministry official described it as unauthorized activity of the Russian store.

He said it would be hard to find the store selling it, but he does not believe that it can affect the image of Armenian cheese. 

When asked why the price of Armenian cheese, which has become uncompetitive in Russia, has not declined in Armenia,  Ghazaryan said again that the cost price is quite high.

Because of the depreciation of the ruble, not only cheese makers, but also winemakers and manufacturers of tinned goods and juices found themselves in a difficult situation.   

The official said that most of the products are exported to Russia where the purchasing power of citizens has fallen. Our producers are forced to export at a low price, almost without making a profit. “I hope that this is a temporary phenomenon,”   he noted.

He added that under such conditions no cases of a company’ closure were reported, all factories have taken up loans as their current assets are insufficient. He, however, did not agree that not only the sector’s development, but its very existence is in danger.

Now cheese makers are considering the issue of producing expensive cheese and exporting it to other countries, but not European. It will take several years to deal with that problem.

The World Bank program of providing assistance to the creation of milk processing companies and cooperatives aims to help cheese makers. One component of that program is provision of $8-50 thousand grants.

“The purpose is to purchase equipment and introduce quality management mechanisms. First applications were already received,” he said.